The Letter of Credit will also include an annual auto renewal clause;
The City will charge interest annually on the outstanding DCs which is calculated based upon the greater of:
Statistics Canada Building Construction Price Index Non-Residential (annual change as at 2nd Quarter ) + 1% premium or
Bank of Canada Rate as at June 30th of each year plus one percent (1%);
In the event that a Letter of Credit is not provided, the interest rate on the outstanding DCs will be the greater of:
Statistics Canada Building Construction Price Index Non-Residential (annual change as at 2nd Quarter ) + 5% premium or
Bank of Canada Rate as at June 30th of each year plus five percent (5%);
In the event of default in payment of the DCs, the outstanding amount can be added to the property taxes and collected in the same manner as property taxes; and,
THAT City Council AUTHORIZE the Chief Administrative Officer and City Clerk to execute said agreement, acceptable in form to the City Solicitor, in technical content to the Chief Building Official, and in financial content to the Chief Financial Officer and City Treasurer.
Executive Summary:
Background:
On March 25, 2019, City Council accepted the recommendations of the Development and Heritage Standing Committee which approved Official Plan and Zoning By-law amendments required to proceed with the proposed redevelopment of the lands located at 1600 Lauzon Rd. (formerly Lear Corporation lands) by Farhi Holding Corporation (FHC) (C119/2019).
On April 15, 2019 City Council approved the application made by FHC for participation in the Brownfield Tax Assistance and Rehabilitation Grant Programs which provide various financial incentives as allowed under the Brownfield Community Improvement Plan (Brownfield CIP) (CR187/2019).
As part of the approved financial incentives, FHC would be eligible to receive:
A 60% reduction in development charges (DCs)
A tax cancellation equivalent to 100% of the increase in total property tax for up to 3 years
A grant equivalent to 70% of the increase in municipal property taxes for up to 10 years or until 100% of the eligible costs are repaid. It should be noted that a